Thursday, October 30, 2008
The next time bomb: Debt insurance #!###!!
Economic growth will help prevent another financial time bomb--credit default swaps, a form of debt insurance--from exploding. The nominal amount peaked at $62 trillion and is now down to $55 trillion. Renewed prosperity will enable big companies to service their debts, thus nullifying the need to ever collect on the insurance. Most of these swaps will expire within five years.
THIS LINK posted by Joseph Bell : 12:25 PM
